$this->bbcode_second_pass_quote('theluckycountry', '[')b]Are the Chinese selling US dollar-denominated assets to buy gold?
It sure looks that way. https://schiffgold.com/key-gold-news/ar ... -buy-gold/
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THE Precious Metals: Gold Thread 2023 (Merged)
Re: THE Precious Metals: Gold Thread 2023 (Merged)
by careinke » Wed 25 Oct 2023, 16:13:58
They are.
They are also the second largest BTC miners, but the U.S. is still #1 the US.
Bard says:
$this->bbcode_second_pass_quote('', 'A')s of October 25, 2023, Bitcoin miners in China account for about 21% of the total global BTC mining hash rate distribution.
This makes China the second largest Bitcoin mining country in the world, after the United States.
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Re: THE Precious Metals: Gold Thread 2023 (Merged)
by theluckycountry » Wed 25 Oct 2023, 17:01:56
The key to bitcoin mining, or verification profit, is cheap electricity. In China it's 8-cents kWh. In the US, 18-cents. Interesting that more isn't done there in China.
By the way, re out discussion on gold on the other thread, I typically post up data on the $US, but that is not what I work with of course. Here is the 5 year aussie chart.
As you can see it's over 50% higher than the US price and there is a marked uptick over the past year. That can be explained in terms of the $US strengthening against the $Au, since gold is still priced in US bucks. But either way It means that across nations in the western world gold keeps pace with the currency of account and ignores local currency fluctuations.
All this is coming to end now though with the advent of the BRICS multi-polar world. Who knows what will happen with pricing in the days ahead but the same happened when we went off the British sterling system and the market adjusted. I think perhaps the 50% increase in the US gold price in 1933 was that adjustment. The history books point to the fact that Britain went off the gold standard in 1931, and most other nations had as well, so they pegged their currencies to the now un-backed Pound for stability. But who set the price of Gold before 1931? Britain obviously, because it was the global Empire, the world police, even though it was bankrupted by WWI.
https://eh.net/encyclopedia/the-sterling-area/
Was the 50% increase in the US the beginning of a takeover? Who knows, who really cares. I'm off to town to do some shopping.
By the way, re out discussion on gold on the other thread, I typically post up data on the $US, but that is not what I work with of course. Here is the 5 year aussie chart.
As you can see it's over 50% higher than the US price and there is a marked uptick over the past year. That can be explained in terms of the $US strengthening against the $Au, since gold is still priced in US bucks. But either way It means that across nations in the western world gold keeps pace with the currency of account and ignores local currency fluctuations.
All this is coming to end now though with the advent of the BRICS multi-polar world. Who knows what will happen with pricing in the days ahead but the same happened when we went off the British sterling system and the market adjusted. I think perhaps the 50% increase in the US gold price in 1933 was that adjustment. The history books point to the fact that Britain went off the gold standard in 1931, and most other nations had as well, so they pegged their currencies to the now un-backed Pound for stability. But who set the price of Gold before 1931? Britain obviously, because it was the global Empire, the world police, even though it was bankrupted by WWI.
https://eh.net/encyclopedia/the-sterling-area/
Was the 50% increase in the US the beginning of a takeover? Who knows, who really cares. I'm off to town to do some shopping.
We're 17 years past the peak now and the 3rd World is going hungry and dark. We'll be next, we're well on the way in fact.
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Re: THE Precious Metals: Gold Thread 2023 (Merged)
by yellowcanoe » Wed 25 Oct 2023, 20:12:11
$this->bbcode_second_pass_quote('theluckycountry', 'T')he key to bitcoin mining, or verification profit, is cheap electricity. In China it's 8-cents kWh. In the US, 18-cents. Interesting that more isn't done there in China.
Crypto trading and mining is banned in China. https://www.reuters.com/world/china/chi ... 021-09-24/
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Re: THE Precious Metals: Gold Thread 2023 (Merged)
by careinke » Thu 26 Oct 2023, 03:53:10
$this->bbcode_second_pass_quote('yellowcanoe', '')$this->bbcode_second_pass_quote('theluckycountry', 'T')he key to bitcoin mining, or verification profit, is cheap electricity. In China it's 8-cents kWh. In the US, 18-cents. Interesting that more isn't done there in China.
Crypto trading and mining is banned in China. https://www.reuters.com/world/china/chi ... 021-09-24/
Well it's happening in reality, what can I say? BTC is an open book. I suspect it is the government actually doing the mining, or at least some people in the government.
My electricity costs about 7.5 cents per KWh. Maybe I'll get a couple of miners. Especially after Mike Johnson is the new speaker of the house.
BTC used to be connected to the Stock Market, not anymore. If you look at all the Major Banks, BTC is currently the inverse of the banks. If you flipped the banks stock chart upside down, you would think it was the current BTC chart.
Bard Says:
$this->bbcode_second_pass_quote('', '')$this->bbcode_second_pass_quote('', 'Y')es, there is currently an inverse correlation between the BTC chart and major US banks.
This means that when the price of Bitcoin goes up, the stock prices of major US banks tend to go down, and vice versa. This is likely due to a number of factors, including:
Bitcoin is seen as a risk asset, while major US banks are seen as safe haven assets. When investors are feeling risky, they tend to put their money into risk assets like Bitcoin. When investors are feeling more cautious, they tend to put their money into safe haven assets like major US banks.
Bitcoin is seen as a competitor to the traditional financial system, which is dominated by major US banks. As Bitcoin becomes more popular and widely accepted, it could pose a threat to the profits and market share of major US banks.
Major US banks are facing increasing regulatory scrutiny, while Bitcoin is currently largely unregulated. This makes Bitcoin a more attractive investment for some investors, as they see it as a way to escape government regulation.
Here is a chart of the Bitcoin price and the S&P 500 Banks Index over the past year:
Bitcoin price and S&P 500 Banks Index chartOpens in a new window
http://www.investopedia.com
Bitcoin price and S&P 500 Banks Index chart
As you can see, the two charts have moved in opposite directions most of the time over the past year. This suggests that there is a strong inverse correlation between the two assets.
It is important to note that correlation does not equal causation. Just because Bitcoin and major US banks are inversely correlated does not mean that one causes the other to move. However, the strong correlation between the two assets does suggest that there is some underlying relationship between them.
Fix the money, Fix the world.
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